Pixel P&L: Navigating India’s Hyper-Casual Gaming Surge

Good Morning. It's Monday, August 19. In today's edition, we explore the rapid expansion of India's casual and hyper-casual gaming market, fueled by a surge in mobile usage and increased investment. Also on our radar: the highly anticipated launch of Indus' open beta, Riot Games' latest corporate restructuring, and other key developments shaping the gaming industry.

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India's casual and hyper-casual gaming market is set to expand dramatically, with estimates projecting growth from $700 million in 2023 to $2.3 billion by 2028. Yet, despite this surge, many Indian game developers continue to focus on generating revenue from players in overseas markets, leaving the domestic potential largely unexplored. Why is this the case?

In our latest feature, we delve into the factors driving this strategic focus, including:

• The rapid increase in the number of game studios and developers across India.

• Felicity Games’ approach to identifying promising talent and scaling games for success.

• Industry veteran Surojit Roy’s take on how hyper-casual game development has evolved over the last decade.

• The significant changes in customer acquisition costs for U.S. audiences, then versus now.

• The current role of organic acquisition—are Google and Apple still the gatekeepers?

• Balancing monetization strategies between advertisements and in-app purchases.

• Key recommendations for aspiring Indian game developers looking to break into the industry.

This deep dive offers a comprehensive look at the trends shaping India’s hyper-casual gaming landscape and the opportunities that lie ahead.

Leading Indian game developer SuperGaming has opened the beta for Indus, a battle royale set in an Indo-futuristic universe. The game's release marks a significant step for Indian developers aiming to make a global impact in the competitive battle royale genre. With over 12 million pre-registrations, the open beta allows players to experience the game ahead of its official launch.

A notable feature introduced with the open beta is the Grudge System, which adds a revenge element to gameplay. Players eliminated during a match can mark their opponent for a future encounter, creating an opportunity for a rematch and potential rewards. This system reflects a growing trend in multiplayer games to incorporate personalized rivalries and incentives beyond standard match progression.

SuperGaming has highlighted the beta as a crucial phase for gathering player feedback and refining the game. According to Roby John, Co-founder and CEO, this open beta will help ensure Indus aligns with player expectations. The game has undergone several updates since its closed beta, aimed at optimizing performance and addressing issues.

Indus is available for beta testing on Android and iOS, with a pre-launch battle pass offering additional in-game rewards. The launch also includes an initiative to engage content creators and community members through the Indus Insiders 2 program.

Riot Games Restructures Leadership, Expands TV and Film Studios

Riot Games has reorganized its leadership, appointing John Needham as president of publishing and esports, tasked with blending the company’s efforts across esports, music, and creative publishing. The restructuring also includes the creation of two new studios for TV and film, with Christian Linke, the creator of Arcane, heading an animation studio, and former Netflix executive Brian Wright leading a live-action division. Riot's CEO, Dylan Jadeja, described the move as part of an ongoing effort to better align the organization with player expectations and create new experiences across its entertainment platforms.

Gaming Industry Investment Surges Amid Slump in M&As and IPOs

The gaming industry is showing signs of recovery from last year’s turmoil, according to DDM's Games Investment Review. Investments in 2024 have surged, with the first half reaching $8.1 billion, nearly double the $4.5 billion total for all of 2023. Despite this resurgence, mergers and acquisitions (M&A) remain low, with Q2 2024 seeing $845 million across 40 transactions, a 59% drop in value compared to Q1. Initial public offerings (IPOs) also stalled, with no public debuts in Q2, breaking a five-year streak. DDM's Mitchell Reavis sees these trends as a positive signal for the industry’s near future.

Epic Games Store Debuts on Mobile, Bringing Fortnite and Fall Guys with Exclusive Rewards

Epic Games has launched its mobile store, offering hits like Fortnite, Fall Guys, and Rocket League Sideswipe. The move marks a significant shift, especially for Fortnite players, who had been blocked from accessing the game on mobile platforms following Epic's standoff with Apple and Google over platform fees. The store also brings Fall Guys to mobile for the first time, alongside crossplay and progression features. Epic is sweetening the deal with in-game rewards for players who download from the store, signaling a new era in mobile game distribution.

GameSquare Reports $28.6M Revenue in Q2 2024, Despite Increased Losses and Key Developments

GameSquare Holding reported $28.6 million in revenue for Q2 2024, similar to the previous year's $23.1 million on a proforma basis. Despite the revenue increase, GameSquare’s net loss widened to $12 million, compared to $4.1 million in Q2 2023. The company's gross profit was $4.2 million, with operating expenses reduced to $10 million. GameSquare’s Q2 developments included the sale of a 25.5% stake in FaZe Media for $9.5 million, new partnerships, and growing demand for Unreal Editor for Fortnite (UEFN) services. FaZe Media’s reboot and expanded creator roster, with 1.2 billion views, also contributed to growth.